Quantitative Aptitude

Simple and Compound Interest

3,394 Questions
All Simple interest and its inverse forms 768 Compound interest with annual compounding 742 Simple-interest growth and split sums 626 Difference between compound and simple interest 479 Half-yearly and quarterly compounding 252 Changing rates and fractional years 201 Installments (CI based) 190 Ratio of principal to interest 118 Population growth and depreciation 16

Simple and Compound Interest Questions

Multiple choice

Passage

Directions: Study the following information carefully and answer the question. The ratio of money saved by Bhupinder and Chaman in a year was 4 : 3, respectively. Chaman earned Rs. 40,000 in the year. Bhupinder spent Rs. 5000 more than what Amar spent in the year. Money spent by Chaman was Rs. 7500 less than the average money spent by Amar and Bhupinder in the year. Money earned by Chaman in the year was of the money earned by Amar in the year. Bhupinder saved Rs. 20,000 in the year. Note: Money earned in the year = Money saved + Money spent

Find the difference (in Rs.) between the interest earned by Amar and Bhupinder, if they both deposited 50% of the money saved in a bank at simple interest of 12.5% p.a. for two years.

  1. Rs. 825

  2. Rs. 625

  3. Rs. 2500

  4. Rs. 1250

  5. Rs. 1050
Reveal answer Fill a bubble to check yourself
B Correct answer
Multiple choice

Passage

Directions: Study the given information and answer the following question. A loan disbursement company offers different loan interest rates based on types of customers. The following table provides the details: Name Type of interest Principal Amount Year Rate (%) Low income group Compound Rs. 10,000 4 Females Simple Rs. 2,95,000 3 Senior citizens Compound Rs. 20,000 2 3 Students Simple 4 Persons with army background Compound 5 2

What is the amount for senior citizens if the interest is compounded yearly for 2 years?

  1. Rs. 19,165.7

  2. Rs. 20,320.9

  3. Rs. 21,218

  4. Rs. 22,418

  5. Rs. 25,300.5
Reveal answer Fill a bubble to check yourself
C Correct answer
Multiple choice

Passage

Directions: Study the given information and answer the following question. A loan disbursement company offers different loan interest rates based on types of customers. The following table provides the details: Name Type of interest Principal Amount Year Rate (%) Low income group Compound Rs. 10,000 4 Females Simple Rs. 2,95,000 3 Senior citizens Compound Rs. 20,000 2 3 Students Simple 4 Persons with army background Compound 5 2

If the ratio of principal for senior citizens to that for students is 4 : 5, and the rate of interest for students is 110% of that for senior citizens, then how much will be the interest paid by the students?

  1. Rs. 3300

  2. Rs. 3142

  3. Rs. 3201

  4. Rs. 2890

  5. Rs. 2750
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The students' principal is (5/4) × 20,000 = 25,000. Their rate is 110% of 3%, or 3.3%, and for four years under simple interest the interest is 25,000 × 3.3% × 4 = Rs. 3300.

Multiple choice

Passage

Directions: Study the given information and answer the following question. A loan disbursement company offers different loan interest rates based on types of customers. The following table provides the details: Name Type of interest Principal Amount Year Rate (%) Low income group Compound Rs. 10,000 4 Females Simple Rs. 2,95,000 3 Senior citizens Compound Rs. 20,000 2 3 Students Simple 4 Persons with army background Compound 5 2

At what rate of interest will the amount for females become five times their principal?

  1. 63.58%

  2. 69.96%

  3. 60%

  4. 133.33%

  5. 162.58%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For females, the interest is simple, and the amount must be five times the principal. Therefore, the simple interest is four times the principal, so P x r x 3/100 = 4P. Solving gives r = 133.33% per year.